After TSCM, one of the largest chip suppliers for Apple’s iPhones brought down its target for the complete year at the end of last week, another supplier for the iPhone maker AMS.AG cautioned investors on possible negative operating margins which resulted in its shares tumbling down sharply. This is a further indication of the rumored lower demand for iPhone X.
Baader Helvea AG analyst Guenther Hollfelder said in a note that lower iPhone X sale volumes resulted in a significant impact on the low short-term guidance issued by the Austrian-based AMS late on Monday.
The stock is listed in Zurich where it saw a drop of 14 per cent to reach 82.44 Swiss francs Tuesday following the edited guidance. There has been an overall increase of 8.1 per cent in the share price of the company in this. Market estimate a second revenue jump of 10 to 25 percent year-on-year top touch between $220 million to 250 million for the company. however even that is below the earlier market expectations.
While recently launching into the business production of 3-D sensors, the core products of the company are optical sensors which are used in mobile phones for management of color, brightness, and to determine whether the handset is being held against the ear. Hollfelder said that the the company’s second-quarter sales guidance “corresponds with about 20-25 million less iPhone X units based on our calculations.”
While Apple keeps sale figures of iPhone X a secret, market investors have bene attempting to identify signals that can indicate demand for the iPhone X. there are clear signals the demand for iPhone x could be falling as a sharp slowdown in monthly sales have been reported by five of the largest device assemblers of Apple. Those companies had reported high sales at the end of last fiscal year.
While a combined 8 per cent increase in total sales in the first quarter of the current fiscal was reported by important suppliers like Hai Precision Industry Co. and Pegatron Corp. However, the increase dipped significantly later. The current quarter sale for TSCM – the largest chip supplier of Apple, was put at $1 billion less than market projections.
The revenue growth of Apple has bene moving in line with those of its five main device assemblers.
In the past three days, there has been a drop of 7 per cent in the shares of Apple prior to the company announcing its first quarter results on May 1. Forecast for iPhone shipments were cut by analysts at Morgan Stanley on Friday. A 3-day loss of just under 7 per cent has bene reported by the Philadelphia Semiconductor Index.
Adjusted earnings for the first quarter for AMS was reported at $77.3 million which was lower hat the market estimates of $82.9 million.
“This is all Apple, specifically iPhone X,” said Neil Campling, senior analyst at Mirabaud Securities Ltd.
(Adapted form Bloomberg.com)